So you wanna be a freelancer?

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Last week we launched the Geist Writers and Artists Fund. In case you needed some more reasons to donate, I’ve cited Larry E. Hand’s timeless 1995 book Freelancing Made Simple:

Expenses

·“An electronic word processor that is a combination typewriter, electronic monitor, and printer. But make sure it has the capability of saving files to a floppy disk that can be read by a computer”·In most cases you’ll be converting some type of room or a section of the garage, basement, or attic into a work area in which you will need: a second phone line, electrical wiring of all sorts, a small window air conditioner·"Consider colours and how they affect you. Would you work better if the wall had a cheery, bright wallpaper?"

Financing Options

“In many cases, freelancers finance their own ventures, since lenders tend to look at them as bad risks”

You may:

Withdraw savings

Cash in a certificate of deposit

Borrow money from relatives

Get a personal bank loan

Charge equipment or computers to your credit card

Get a home-equity loan

Consequences of Freelancing

“The freelancers self-confidence can erode into a neurosis”

“The next fear is not having enough business to keep the cash-flowing, and a common reaction to that fear is to take on too much work. Then you either miss deadlines, work so hard that you burn out, or both”

Questions to Ask Yourself as a Freelancer

“Am I overcommitted financially right now to the point that I can’t forgo a steady cash flow?”

“Am I sufficiently committed to my chosen occupation that I’ll want to do it even though it doesn’t bring in any cash for a period of time?

Conclusions

“People with full-time jobs generally know what they are going to make in salary over the next year. In freelancing…you sometimes don’t know what you’re going to make next month”